Ares Management Corporation, often referred to simply as Ares Management, is a global alternative investment firm that engages in credit and private equity investment strategies. The company is headquartered in Los Angeles, California, and operates in North America, Europe, and Asia. At the helm of the company is its Board of Directors, a group of experienced individuals who guide and oversee its operations. In this article, we take a deep dive into the history, composition, and leadership of Ares Management's Board of Directors.
Ares Management was founded by Tony Ressler, John Kissick, and Ezra Nahum in 1997, with a focus on providing high-quality alternative investments to its clients. From its early days, the company has been an innovator in the alternative investment space, constantly developing new strategies and approaches to generate superior returns for its investors. Today, Ares Management is one of the largest alternative investment firms in the world, with over $170 billion in assets under management.
Over the years, Ares Management has expanded its investment offerings beyond its initial focus on private equity. The firm now also offers investments in real estate, credit, and infrastructure, among other areas. Ares Management has also grown its global presence, with offices in North America, Europe, and Asia. Despite its growth, the company remains committed to its founding principles of providing innovative investment solutions and exceptional client service.
The Board of Directors plays a critical role in the success of Ares Management. It's responsible for providing strategic direction and oversight to the company, ensuring that it's operating in the best interests of its investors and stakeholders. Additionally, the Board is responsible for appointing and evaluating the performance of the company's executive leadership team, including the CEO.
Furthermore, the Board of Directors is also responsible for ensuring that Ares Management is in compliance with all applicable laws and regulations. This includes overseeing the company's financial reporting and ensuring that it's accurate and transparent. The Board also plays a key role in managing risk, by identifying potential risks and developing strategies to mitigate them. Overall, the Board of Directors is essential to the long-term success and sustainability of Ares Management.
Ares Management's Board of Directors is comprised of 10 highly experienced professionals with diverse backgrounds and skillsets. The current Chairman of the Board is Antony Ressler, who co-founded the company and has been a driving force behind its success. Other members of the Board include Michael Arougheti, David Kaplan, Richard Auchus, and Kipp deVeer, among others. With decades of experience in the financial services industry, each member brings a unique perspective and skillset to the table.
In addition to their impressive backgrounds, the members of Ares Management's Board of Directors are also committed to giving back to their communities. The company has a strong philanthropic focus, with a particular emphasis on supporting education and youth development initiatives. Board members are actively involved in these efforts, volunteering their time and resources to make a positive impact in the areas where they live and work.
The members of Ares Management's Board of Directors have significant experience and knowledge in key areas relevant to the company's operations. They bring a range of expertise, including finance, law, business strategy, and risk management. Additionally, the Board values diversity and seeks to include members with different backgrounds, experiences, and perspectives to provide more comprehensive oversight of the company.
To be considered for a position on the Board of Directors, candidates must have a proven track record of leadership and success in their respective fields. They must also possess strong communication and interpersonal skills, as well as the ability to work collaboratively with other board members and senior management. Ares Management also looks for individuals who have a deep understanding of the company's industry and the broader economic landscape, as well as a commitment to ethical business practices and corporate social responsibility.
The Board of Directors has several important responsibilities and duties to uphold. First and foremost, they are responsible for setting the strategic direction of the company and ensuring that it's aligned with the interests of investors and stakeholders. They also oversee the management of the company's assets, including risk management and performance evaluation. Additionally, the Board has a responsibility to ensure that the company operates in accordance with legal and ethical standards and that it's compliant with all applicable regulations.
Another important responsibility of the Ares Management Board of Directors is to oversee the company's financial performance and ensure that it's meeting its financial goals. This includes reviewing financial reports and statements, monitoring cash flow, and making decisions related to investments and financing. The Board also plays a key role in selecting and evaluating the company's executive leadership team, ensuring that they have the necessary skills and experience to effectively manage the company's operations and drive growth. Overall, the Board of Directors plays a critical role in guiding the strategic direction and ensuring the success of Ares Management.
The decision-making process in Ares Management's Board of Directors involves careful consideration of all relevant factors and input from multiple sources. Board members deliberate and debate on key issues to arrive at the best possible outcome for the company and its stakeholders. The decisions made by the Board are based on a comprehensive understanding of the company's operations, market trends, and emerging risks.
Additionally, the Board of Directors at Ares Management also takes into account the perspectives and concerns of its shareholders. Regular meetings are held with shareholders to discuss the company's performance and future plans. The Board also considers feedback from its employees, customers, and other stakeholders to ensure that decisions are made in the best interest of all parties involved.
The Board of Directors plays a vital role in the development and implementation of Ares Management's business strategies. By providing oversight and guidance, the Board helps to ensure that the company's strategies are aligned with its long-term goals and interests. Additionally, the Board's insights and perspectives on market trends and emerging risks help to shape the company's business strategies and ensure that they're robust enough to withstand evolving market conditions.
Furthermore, the Board of Directors also plays a crucial role in ensuring that Ares Management's business strategies are ethical and socially responsible. They oversee the company's compliance with regulations and ethical standards, ensuring that the company operates in a manner that is consistent with its values and mission.
Finally, the Board of Directors also helps to identify and evaluate potential growth opportunities for Ares Management. They provide guidance on potential mergers and acquisitions, partnerships, and other strategic initiatives that can help the company expand its reach and increase its profitability.
The CEO of Ares Management reports directly to the Board of Directors and works closely with them to implement the company's business strategies. The CEO is responsible for executing the Board's directives and ensuring that the company operates in accordance with its long-term goals and interests. Additionally, the CEO provides regular updates on the company's performance and keeps the Board informed of emerging risks and challenges.
Furthermore, the CEO and the Board of Directors engage in regular discussions to identify potential growth opportunities and assess the company's competitive landscape. They also collaborate on important decisions such as mergers and acquisitions, major investments, and changes in the company's leadership.
It is important to note that the relationship between the CEO and the Board of Directors is built on trust, transparency, and open communication. The CEO is expected to act in the best interests of the company and its stakeholders, while the Board provides oversight and guidance to ensure that the company is managed effectively and ethically.
The composition of Ares Management's Board of Directors has evolved over time to reflect the changing needs of the company and the market. The Board's emphasis on diversity has led to the inclusion of more women and people of color in recent years. Additionally, as the company has expanded into new markets and investment strategies, the Board has added members with relevant expertise and experience to guide and oversee those initiatives.
One notable change in the composition of Ares Management's Board of Directors is the increase in independent directors. In 2014, the company had only one independent director, but by 2021, the majority of the Board was made up of independent directors. This shift towards greater independence is in line with corporate governance best practices and helps to ensure that the Board is able to provide effective oversight of the company's management and operations.
The Board of Directors is committed to diversity and inclusion, recognizing that a diverse group of individuals brings a range of perspectives and insights to the table. The Board seeks to ensure that its members represent a broad range of backgrounds and experiences, including gender, race, ethnicity, and career paths.
In addition to promoting diversity within its own Board of Directors, Ares Management also encourages diversity and inclusion throughout its portfolio companies. The company believes that diverse teams lead to better decision-making and ultimately drive better business outcomes. Ares Management works with its portfolio companies to implement diversity and inclusion initiatives, such as unconscious bias training and diverse candidate slates for hiring and promotions.
The Board of Directors has set ambitious goals for Ares Management's future growth and success. They're focused on continuing to innovate within the alternative investment space and providing superior returns for investors. Additionally, the Board is committed to advancing diversity and inclusion within the company and the industry more broadly, recognizing that it's essential for long-term success.
One of the key areas of focus for Ares Management's Board of Directors is expanding their global reach. They're actively seeking opportunities to expand their presence in new markets and regions, with a particular focus on Asia and Europe. This expansion will allow Ares Management to tap into new sources of capital and provide their investors with even greater diversification.
Another important goal for the Board is to continue to attract and retain top talent. Ares Management is known for its strong culture and commitment to employee development, and the Board is committed to maintaining this reputation. They're investing in new training and development programs, as well as offering competitive compensation packages and benefits to ensure that they can attract and retain the best and brightest in the industry.
Ares Management operates in a rapidly changing market, with new technologies and investment strategies emerging all the time. For the Board of Directors, staying ahead of these trends and ensuring that the company remains competitive requires constant vigilance and adaptation. Additionally, the Board must remain vigilant against emerging risks, including regulatory changes, market volatility, and other challenges that could impact the company's performance.
Under the leadership of Ares Management's Board of Directors, the company has achieved significant success and growth. The Board's strategic direction and oversight have guided the company through market fluctuations and helped to ensure that it remains competitive and resilient. Additionally, the Board's commitment to diversity and inclusion has strengthened the company's culture and contributed to its long-term success.
We had the opportunity to speak with several members of Ares Management's Board of Directors, who provided valuable insights into the company's operations and future direction. According to Board member Michael Arougheti, "The key to success in the alternative investment business is having the ability to be intellectually flexible and adaptive." Other members of the Board echoed this sentiment and stressed the importance of innovation and agility in an ever-changing market.
In conclusion, the Board of Directors plays a critical role in the ongoing success of Ares Management. Its strategic direction and oversight provide the company with stability and guidance in a rapidly evolving market. The Board's commitment to diversity and inclusion, as well as its focus on innovation and agility, bodes well for Ares Management's continued growth and success in the years ahead.
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